Text messages are expensive. The maximum character count for a text message is 160. That’s 160 bytes for you nerds out there. Assuming the going rate of text messages at AT&T ($0.20 per message without a plan), that comes out to $1,310 per megabyte. That’s why they encourage you to sign up for their text messaging plans, also a ripoff considering the amount of data that’s transmitted over a text message.
Consider that their 2 GB plan comes to $25 for a month. If you convert their 2 GB data plan into text messages, it should cost you $0.0004 per message, or 2,500 messages for $1 (assuming my math is correct). Again, I’m making basic assumptions that a text message is 160 bytes (typically you text less than 160 characters).
That’s quite a mark up. Phone companies know this and have slowly increased text messages from 2 cents each to 20 cents each. Eventually, you have to get a messaging plan.
In a later post, I’ll do a review on alternatives to text messaging. For now, I’ll leave you with these options:
- Use mobile IM (you’re already paying for a data plan, use it)
- Sign up for Google Voice and get free SMS. Their newest iPhone app also includes push notification.
- Use a mobile messaging platform.
Can anyone confirm my back of the envelope calculations?
While you math is correct, I do have two points:
First, envelope has two e's.
And second, there are far bigger scams out there, such as unpaid internships, and health insurance.
Thank you for the corrections and they are noted. I was more concerned with the math and assumptions in the estimate. I do agree with the language of the title and changed it to a scam rather than the biggest scam.
I might add graduate students as another scam as well. Their pay is not commensurate to the hours they work and the expertise they possess.